Monday, February 18, 2013
5:21:02 PM EDT

Sequestration Looms

by
James Brown

No new trades tonight. The S&P 500 and Russell 2000 index continue to post gains but momentum is slowing down, especially for the big cap stocks. Now that earnings season is over the next catalyst to drive stocks higher is a mystery. Soon the market could face trouble from Washington with the sequestration deadline on March 1st.

I would strongly hesitate to launch new bullish positions now when we have a very good chance of seeing lower prices two or three weeks from now.

Our watch list has been successful in spite of the market's slow down. Two watch list candidates graduated to the play list last week in KO and SLB. I have added two new watch list candidates tonight.

Plus, I've added a few more names to the radar screen list below.

Radar Screen:
Here is a list of stocks on my radar screen. These have potential to be LEAPS trades down the road if the right entry point presents itself: